Motor vehicles – block exemption from European Union competition law

SUMMARY OF:

Regulation (EU) No 461/2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector

WHAT IS THE AIM OF THE REGULATION?

Article 101(3) of the Treaty on the Functioning of the European Union exempts vertical agreements* that confer sufficient benefits to outweigh the anticompetitive effects.

The regulation, known as the motor vehicle block exemption regulation, grants the motor vehicle sector a specific block exemption for vertical agreements for the purchase, sale or resale of new motor vehicles, and for vertical agreements for the provision of repair and maintenance services for such vehicles and for the distribution of spare parts.

Initially due to expire on 31 May 2023, amending Regulation (EU) 2023/822 has extended its validity by a further 5 years. This is to allow the European Commission to react in a timely manner to changes in the motor vehicles market and to take into account developments such as those resulting from vehicle digitalisation, electrification and new mobility patterns.

KEY POINTS

Vertical agreements relating to the purchase, sale or resale of new motor vehicles

When Regulation (EU) No 461/2010 was originally adopted, its purpose was to apply Regulation (EU) No 330/2010 to vertical agreements concerning the purchase, sale or resale of new motor vehicles. Regulation (EU) 2022/720 has superseded Regulation (EU) No 330/2010 (see summary).

Vertical agreements relating to the motor vehicle aftermarket

Regulation (EU) No 461/2010 also applies Regulation (EU) 2022/720 to vertical agreements concerning conditions for the purchase, sale or resale of spare parts for motor vehicles, or for the provision of repair and maintenance services for motor vehicles, so long as these fulfil the requirements for exemption under Regulation (EU) 2022/720, and do not contain any of the following hardcore restrictions described in Regulation (EU) No 461/2010:

restriction on the sale of spare parts for motor vehicles by members of a selective distribution system;
restriction, agreed between a supplier of spare parts or repair equipment and a manufacturer of motor vehicles, of the supplier’s ability to sell those goods to authorised or independent distributors, repairers or end users;
restriction, agreed between a manufacturer of motor vehicles that uses components for the initial assembly of motor vehicles and the supplier of such components, of the supplier’s ability to visibly place its trade mark or logo on the components supplied.

In accordance with Regulation No 19/65/EEC (see summary), when parallel networks of similar vertical restraints cover more than 50% of a relevant market, the Commission may decide that this regulation does not apply to vertical agreements that include specific restraints relating to that market.

Evaluation

Amending Regulation (EU) 2023/822 requires the Commission to monitor the operation of Regulation (EU) No 461/2010 and present its evaluation before 31 May 2028. The most recent evaluation of the operation of the motor vehicle block exemption regulation was published in 2021.

Guidelines

The Commission has also updated its guidelines, which help companies in the motor vehicles sector to assess the compatibility of their vertical agreements with European Union (EU) competition rules, while ensuring that aftermarket operators, including garages, continue to have access to vehicle-generated data necessary for repair and maintenance.

Among other things, the guidelines:

clarify that data generated by vehicle sensors may be an essential input for the provision of repair and maintenance services; thus, to meet the conditions of Article 101, authorised and independent repairers must have access to such data on an equal footing;
require vehicle suppliers to apply the proportionality principle when considering whether to withhold inputs, such as vehicle-generated data, on the basis of potential cybersecurity concerns;
highlight that where a supplier unilaterally withholds an essential input from independent operators, such as vehicle-generated data, Article 102 of the Treaty on the Functioning of the European Union on the abuse of dominant position may be applicable.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 June 2010 and will remain valid until 31 May 2028.

BACKGROUND

For further information, see:

Motor vehicles (European Commission).

KEY TERMS

Vertical agreement. An agreement or concerted practice entered into between two or more undertakings each of which operates at a different level of the production or distribution chain, and relating to the conditions under which the parties may purchase, sell or resell certain goods or services.

MAIN DOCUMENT

Commission Regulation (EU) No 461/2010 of 27 May 2010 on the application of Article 101(3) of the Treaty on the Functioning of the European Union to categories of vertical agreements and concerted practices in the motor vehicle sector (OJ L 129, 28.5.2010, pp. 52–57).

Successive amendments to Regulation (EU) No 461/2010 have been incorporated into the original text. This consolidated version is of documentary value only.